XML 72 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Sep. 30, 2012
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
| G. | Income Taxes
The provision for income taxes on continuing operations consisted of the following for the years ended September 30:
(in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Current |  | $ | 2,519 |  |  | $ | 1,627 |  |  | $ | 2,576 |
Deferred |  |  | 1,855 |  |  |  | 3,776 |  |  |  | 422 |
Total income tax expense |  | $ | 4,374 |  |  | $ | 5,403 |  |  | $ | 2,998 |
Income tax expense on continuing operations differs from the “expected” income tax expense computed by applying the U.S. federal statutory rate of 34% to earnings before income taxes for the years ended September 30 as a result of the following:
(in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Computed expected tax expense |  | $ | 4,194 |  |  | $ | 5,323 |  |  | $ | 2,347 |
State income taxes, net of federal benefit |  |  | 140 |  |  |  | 140 |  |  |  | 105 |
Stock option disqualifying dispositions and other permanent differences |  |  | 40 |  |  |  | (60 | ) |  |  | 546 |
Total income tax expense |  | $ | 4,374 |  |  | $ | 5,403 |  |  | $ | 2,998 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities at September 30 were as follows:
|  | (in thousands) |  |  | 2012 |  |  | 2011 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |  |  |  |  |
Definite and indefinite lived intangibles |  |  |  |  |  | $ | (14,954 | ) |  | $ | (14,373 | )
Property and equipment |  |  |  |  |  |  | (8,627 | ) |  |  | (8,660 | )
Patron tax |  |  |  |  |  |  | 3,447 |  |  |  | 2,241 |
Net operating loss carryforward and other |  |  |  |  |  |  | (194 | ) |  |  | 2,954 |
Net deferred tax liabilities |  |  |  |  |  | $ | (20,328 | ) |  | $ | (17,838 | )
The net deferred taxes are recorded in the balance sheets as follows:
|  |  |  |  | 2012 |  |  | 2011 |
Current assets |  |  |  |  |  | $ | 3,635 |  |  | $ | 5,195 |
Long-term liabilities |  |  |  |  |  |  | (23,963 | ) |  |  | (23,033 | )
Net deferred tax liabilities |  |  |  |  |  | $ | (20,328 | ) |  | $ | (17,838 | )
Included in the Company’s deferred tax liabilities at September 30, 2012 is approximately $16.1 million representing the tax effect of indefinite lived intangible assets from club acquisitions which are not deductible for tax purposes. These deferred tax liabilities will remain in the Company’s balance sheet until the related clubs are sold. The Company may recognize the tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. We recognize accrued interest related to unrecognized tax benefits as a component of interest expense. We recognize penalties related to unrecognized tax benefits as a component of miscellaneous income (expense) in accordance with regulatory requirements. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended September 30, 2012, 2011 and 2010, the Company recognized no interest and penalties for unrecognized tax benefits. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. The last three years remain open to tax examination. For tax purposes, the Company has recognized a loss for tax purposes of approximately $13.5 million for the year ended September 30, 2011 upon the closing of the Las Vegas club. The loss resulted in a loss for tax purposes for the year of approximately $2.3 million. This loss was carried forward to the subsequent year for tax purposes.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration